Fourteen of those who accepted were unionized department employees, said Joan Jessome, president of the Nova Scotia Government & General Employees Union, and the rest worked for Capital Health.

The employees manage the SAP computer system, which includes payroll, procurement, human resources and other information from government departments, district health authorities, school boards, housing authorities and some municipal bodies.

Premier Darrell Dexter announced the untendered deal to contract the work to IBM in November.

The company plans to make Halifax a global delivery centre, growing to 500 employees in eight years. IBM is set to take over the work March 4.

Jessome said 43 union members got letters Wednesday. The letters said they have the option of being placed elsewhere in government, resigning with severance or going on a recall list. They have until midnight Jan. 14 to decide, Jessome said.

The Finance Department is keeping 21 jobs in-house.

Jessome said some senior employees could end up retiring, get a long-service award from the province and go work for IBM.

She said some employees slated to stay with the department are opting for voluntary resignations, which could open positions for those who received letters.

It looks, in the end, like there will be a big loss of corporate memory and experience when IBM takes over, Jessome said.

“I think ‘smooth transition’ will be taken out of the vocabulary on this one.”

Economic and Rural Development and Tourism Minister Percy Paris said he didn’t share her worry.

IBM spokeswoman Carrie Bendzsa and Lucas said they expect the final number of employees moving to the company to change as the transition date gets closer.

The province has a 10-year contract with IBM, starting at $8.4million per year, for the SAP work. That is the same as the existing cost, but the annual price will increase, based on a cost-of-living index used in the information-technology sector.

IBM could earn a payroll rebate of $12.2 million if it hits the job target, while the province estimates it would gain $6 million in tax revenue.